TL;DR
- According to Santiment, investors have shifted their focus from memecoins to Bitcoin and layer-1 networks, prioritizing assets with solid fundamentals.
- The 78% drop in the TRUMP token reflects the risks of investing in cryptocurrencies with no clear utility.
- Lower speculation and increased interest in blockchain infrastructure suggest a more stable and balanced market.
A report from Santiment indicates that crypto investors’ attention has shifted in recent weeks. Interest in memecoins has declined, while Bitcoin and other layer-1 networks have regained prominence in industry discussions. This change reflects a growing preference for assets with solid fundamentals over highly speculative options driven by viral trends.
Santiment’s report reveals that memecoins such as Dogecoin, Shiba Inu, and Pepe have lost presence on social media. In contrast, Bitcoin, Ethereum, Solana, Toncoin, and Cardano now account for 44% of cryptocurrency discussions. This transition is driven by reduced volatility and a decline in speculative movements that previously caused abrupt price increases.
The market has shown a more stable trend amid this shift. Historically, periods of euphoria around cryptocurrencies with no real utility have been followed by sharp downturns. The recent correction of the TRUMP token illustrates this phenomenon. After reaching $73 in January, its value dropped 78% within weeks, highlighting the risks of betting on assets without a clear use case.
Santiment: Has the Market Entered a Phase of Innovation and Adoption?
The growing interest in layer-1 networks suggests that investors are taking a more rational approach. These infrastructures enable the development of smart contracts and decentralized applications, making them key components of the blockchain ecosystem. The preference for these assets indicates a more balanced market, less prone to movements driven solely by speculation.
According to Santiment, the current market context presents mixed signals. Bitcoin is trading below $97,000, still under its all-time high from January 20. Ethereum is hovering around $2,650 but needs to surpass $3,100 to enter recovery territory. Some altcoins have shown greater strength, such as Cardano (ADA), which surged 14% following Grayscale’s spot ETF application.
This phase of lower enthusiasm for speculative assets could contribute to a healthier environment for the sector’s growth. The declining interest in memecoins with no clear utility reduces the risk of bubbles and favors a market more focused on innovation and long-term adoption
